By
Tolu Ajiboye
April 5th, 2024
Citigroup reported $1.40 earnings per share versus 93 cents earnings per share as expected during the third quarter.
Shares of Citigroup Inc (NYSE: C) jumped approximately 1.53% during Tuesday’s pre-market to trade around $46.58. The jump is attributed to the better than anticipated Q3 results that the company released on Tuesday. However, at the time of writing as the market opened C stock is down nearly 1%.
Citigroup stocks have been on the receiving end during the pandemic as indicated by the past performance. According to metrics provided by MarketWatch, Citigroup stocks have tanked 42.57% and 8.51% year to date and in the past three months respectively through Monday. However, they have added approximately 2.39% and 3.31% in the past one month and the last five days respectively.
Their 52 weeks range at the time of writing was between $32 and $83.11. Apparently, the company had a market capitalization of around $95.52 billion and 2.08 billion outstanding shares.
Notably, Citigroup shares are still retesting near the Black Thursday lows. Investors in the Citigroup bank are still feeling the effects of the 2008 financial crisis, which saw C shares drop from trading around $550 to below $20.
However, it is notable that Citigroup shares have been consolidating and perhaps looking to start a new rally.
Citigroup Stock and Q3 Results
The American multinational investment bank and financial services corporation has indicated that it is recovering from the pandemic effect extremely well.
“We continue to navigate the effects of the COVID-19 pandemic extremely well,” Citi CEO Michael Corbat told the media. He said that on Tuesday as the company reported its third-quarter results. Of interest, the company reported better than expected results during the past three months.
Citigroup reported $1.40 earnings per share versus 93 cents earnings per share as expected during the Q3 2020. In addition, the company reported a revenue of $17.3 billion versus $17.2 billion as expected.
Thanks to the exemplary results, the shares are looking at a better future in the coming quarters. Corbat notes that the bank has experienced an increase in deposits and credit costs continued to stabilize. Additionally, the company reported a decrease in the net credit losses to approximately $1.9 billion in the third quarter from $2.2 billion in the previous three-month period.
During the third quarter, Citigroup reported an overall cost of credit of $2.26 billion, which was a decline from $7.9 billion on a quarter-over-quarter basis.
Moreover, Citigroup reported a Fixed income trading yielded revenue of $3.8 billion while equities raked in $875 million in sales. Forward, the company continues to restructure its internal operations to shake off the coronavirus effects that are still evident in the Citigroup stock.